Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Exeter. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Exeter have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due consideration before putting off your Exeter lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Exeter with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Exeter leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a conversion flat in Exeter on the market with a lease of a few days over fifty eight years outstanding. Ali informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. G Anderson owned a purpose-built apartment in Exeter in June 2011. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable properties in Exeter with a long lease were in the region of £216,000. The average ground rent payable was £60 billed every twelve months. The lease lapsed in 2084. Given that there were 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. C Lambert who, having purchased a one bedroom apartment in Exeter in April 2008. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparable residencies in Exeter with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced annually. The lease ran out on 2 October 2104. Given that there were 78 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.